NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) announced today that it will restate its financial results for the quarter ended March 31, 2026, after discovering a revenue recognition error during a post-release review. The error, attributed to a customer order modification on a product shipment at quarter-end, resulted in an overstatement of revenue by approximately $0.5 million. The company emphasized that the restatement does not affect its ongoing business, cash position, or fiscal year 2026 product revenue guidance of at least $10.5 million.
According to the company, the initial revenue reported for the quarter was $2.4 million. The correction reduces that figure by about $0.5 million. Consequently, gross profit was overstated by approximately $0.3 million, and both operating loss and net loss were understated by roughly $0.3 million for the three months ended March 31, 2026. No prior periods were impacted, and the company has initiated measures to improve internal controls over financial reporting.
“This one-time correction does not change our revenue projections for the year,” said Dave Rosa, CEO of NeuroOne. “Our operations remain strong, our growth strategy is unchanged, and we continue to anticipate product revenue for fiscal 2026 of at least $10.5 million.”
The Audit Committee of the Board of Directors, after discussion with management, determined on May 21, 2026, that the company would restate its unaudited condensed financial statements included in its Quarterly Report on Form 10-Q for the period ended March 31, 2026, filed on May 12, 2026. The company stated that the Form 10-Q and other documents referencing those results should no longer be relied upon. An amendment to the Form 10-Q is expected to be filed within the next few weeks.
NeuroOne Medical Technologies is a medical technology company focused on improving surgical care for patients with neurological disorders. The company markets a minimally invasive electrode technology platform with four FDA-cleared product families: Evo® Cortical Electrodes, Evo® sEEG Electrodes, OneRF® Ablation System (for brain), and OneRF® Trigeminal Nerve Ablation System. Additionally, the company is engaged in research and development for drug delivery, basivertebral nerve ablation, and spinal cord stimulation programs. For more information, visit nmtc1.com.
The restatement highlights the importance of accurate revenue recognition in financial reporting, especially for companies with complex customer transactions. While the error was corrected without affecting full-year guidance, it underscores the need for robust internal controls. Investors and stakeholders should note that the company’s core business and growth plans remain unchanged, as reiterated by management.
